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The electronic and electrical equipment sector is something of an oddity. It is neither racy and hi-tech – although some of its braver constituents might still lay claim to such a title – nor attractive, comforting or boring.

It is in the doldrums though, the consequence of a seemingly never-ending parade of profits warnings and poor figures. The sector has posted a 32 per cent decline over the past 12 months and, while many companies were hoping for a pick-up in the second half, nothing spectacular is expected in the short term.

As if this was not enough, it also suffers from a veritable dearth of analyst coverage (especially since the recent round of investment banking cutbacks).

But, as with all areas of the market, there is value to be had and profits to be pocketed so long as you look hard and tread carefully.

Searching for resilience

Searching for resilience is a good place to start. As investors will no doubt be aware, companies selling to the telecoms and general industrial markets have been suffering of late. Among the 'electros', Volex, Advanced Power Components, Pressac and Chloride have all been forced on to the back foot by torrid market conditions and uncertain prospects. Given that the situation remains poor, neither of this lot looks undervalued – further exceptional costs are likely to be incurred in the accounts.

Instead, investors might like to take a look at slimmed-down conglomerate TT electronics, which sells sensors, components and power systems to the automotive, industrial and telecoms sectors.

The company has suffered from a decline in demand from the latter in particular, but automotive sales have been increasing, and this looks set to continue. With around £30 million of pre-tax profits expected this year, and EPS of 13.8p, the shares trade at 11.2 times prospective earnings and offer a yield in the region of 5.7 per cent.

As such, it is little wonder David Larkham of Old Mutual and Tessa Starmar of Charles Stanley both pick-up on TT as an interesting punt at 154p (£239.2 million).

Environmental sensor and safety systems firm First Technology operates in similar market sectors. It has shown resilience because of demand driven by legislative requirements in the automotive industry. Given its strong product pipeline, KBC Peel Hunt analyst Chris Radmore expects medium-term earnings growth to be in the mid-teens, after a flat year to April (which should be confirmed soon).

At 444.5p, and with pre-tax profits expected to come in at £27-£29 million, the shares trade on a prospective p/e of around 16. Worth buying.

On the consumer side, electronics group Alba posted final results showing pre-tax profits of around £23 million, excluding almost £18 million of losses from its Bush Internet investment.

However, with Bush's problems seemingly behind it, the shares could be worth a look. Profits are expected to rise to £27 million this year, giving the shares a forward p/e of less than 10, at 385p.

For investors worried about the state of British manufacturing and the continuing threat from low-cost foreign competition, consider distributors Abacus, Deltron Electronics and Aim-listed Solid State Supplies. Each has remained profitable, despite the difficult times, and all are well set to benefit from any upturn.

Brighter sparks

Those seeking a more exciting ride should look towards Aim and Ofex constituents, with the former now a popular resting place for electronics companies from the Full List.

Of those on offer, SRS Technology's smart home systems could be in line for heavy investment from NHS trusts looking to help disabled people to become more independent.

Well-managed power electronics and components minnow Elektron also offers speculative potential with a view to a market recovery.

On Ofex, surveillance firm Croma and video-over-networks hopeful Sirrus could reward a speculator, but they remain early-stage.

Investors might prefer the more secure prospects of hearing aid improvement specialist Hearing Enhancement and vehicle recognition group Appian Technology. Both have impressive sales growth behind them and have reached monthly breakeven.